![](\"https:\/\/taxwhatifdoctor.com\/wp-content\/uploads\/Blog-Pic-2023.03.21.png\" "\\"Why")
<\/a><\/div>Why Didn\u2019t My Tax Preparer Tell Me That?<\/a><\/span>When you start tax planning with a new client, the first thing people often ask is why the accountant or CPA they are using doesn\u2019t think or act the way you do in discussing the hunt for possible tax savings. After all, the current CPA is smart, trustworthy, running a successful accounting business and well respected in the community. So, why are you telling them all these wonderful new tax savings ideas that their CPA has never mentioned? There are many explanations, but the simplest is how the accountants themselves view the job that they do. Often, accountants think that the profession of accounting in its simplest form is the job of telling the story of money that has already<\/p><\/div><\/li>
<\/a><\/div>Why Do the Wealthy Pay Less Tax than Others?<\/a><\/span>Well, do they or don\u2019t they, actually? Long debated and often manipulated by the media, the topic of the wealthy and taxation has many, many complex points and counterpoints.\u00a0First, when people say that, they often don\u2019t define what kind of tax. The people hearing the comment usually go to federal personal income tax in their mind as TAXES. However, if a wealthy person owns 20 C corporations, with each filing their own tax returns, those C corporations pay their own taxes and unless the wealthy person needed to take a dividend or other distribution, then they could pay zero federal income tax, even though their companies paid potentially millions in taxes themselves. \u00a0 The kinds of taxes people pay depends<\/p><\/div><\/li>
<\/a><\/div>Charitable Planning for Younger Clients ~ with a Twist<\/a><\/span>Often people will have one-time \u201cIncome Events\u201d that greatly increase the income tax due in that year. Finding ways to mitigate that additional tax, especially for younger people, can be challenging. In some cases, setting up a Charitable Lead Trust (CLT) in order to receive an upfront income tax deduction might be viable option. A person who has significant and unusual taxable income in a particular year can establish the grantor lead trust and use the charitable income tax deduction to mitigate the impact of taxes in his or her situation. An example might be someone who has received the proceeds from selling a business, or a stock option at work is coming due. A far more common and likely<\/p><\/div><\/li>
<\/a><\/div>Tax Planning Often Has Bonus Benefits<\/a><\/span>Have you worked toward losing weight in the past because you want to look more attractive, or fit into an expensive wardrobe you already own? When you lose weight you often also lower your blood pressure and\/or cholesterol as a bonus. It might not be the primary motivation, but the extra benefit is of course welcome! If you are a business owner, then we pose this question. Some time ago you had an idea. Over the years your turned that idea into a successful and profitable business. Have you properly protected what you worked so hard to build?\u00a0An unexpected turn of events could put your biggest asset at risk. Did you know that moving business earnings into a qualified plan<\/p><\/div><\/li>
<\/a><\/div>Income Taxes Surprising People is Surprising! Empower Yourself!<\/a><\/span>Most people feel like their taxes are a sleeping giant. They tiptoe around them as if staying away from the topic will keep it from waking up. Then at tax time when the giant awakens, they often act as if the final tax refund or bill is a surprise. Many working people try to change their withholding to get their tax outcome \u201cdialed in\u201d, but that joy of having a refund of \u201cXYZ\u201d coming is so often way off from what was expected and they are shocked. That\u2019s because taxes are dealt with one time a year for most and their scenarios that lead to a consistent outcome change. For example, they go from no kids, to having kids. Children<\/p><\/div><\/li><\/ul> <\/div>